Shares of Nilkamal soared to record highs. Know why

Shares of Nilkamal Ltd., a maker of plastic furniture, soared to record highs after the company said its quarterly profit surged on the back of a modest rise in sales.

Nilkamal said its first quarter Net Profit jumped 366 percent to 25.3 crore rupees compared with 5.46 crore rupees in the same quarter a year ago. Sales during April-June rose 9.6 percent to 455 crore rupees from 415 crore rupees in the year ago period.

Nilkamal rose 6.2 percent, or 57 rupees, to 977 rupees, a record high on the National Stock Exchange, where 4.16 lakh shares were traded by 11:40 am compared with the 5-day average of 3.32 lakh shares.

Nilkamal 's market capitalisation has jumped 214 percent in the past one year to 1,374 crore rupees as investors bought into an expanding market share and soaring demand for its products.

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